Pound Sterling Price News and Forecast: GBP/USD attracts some sellers amid Hormuz risks

FXStreet Team FXStreet

Pound Sterling remains depressed vs USD; GBP/USD holds above 1.3400 as traders await US CPI

The GBP/USD pair drifts lower during the Asian session on Friday, though it lacks follow-through selling and remains close to its highest level since late February, set earlier this week. Spot prices currently trade around the 1.3420-1.3415 region and seem poised to register strong weekly gains as investors now look to the latest US consumer inflation figures for a fresh impetus.

The crucial US Consumer Price Index (CPI) report is expected to show that inflation likely rose further in March amid the war-driven surge in Crude Oil prices. This could further discourage the US Federal Reserve (Fed) from cutting interest rates for a while. Adding to this, tensions around the Strait of Hormuz offer some support to the US Dollar (USD), which is seen as a key factor exerting some pressure on the GBP/USD pair. Read more...

Pound Sterling slips as renewed risk aversion lifts US Dollar

GBP/USD edges lower after four days of gains, trading around 1.3430 during the Asian hours on Friday. The pair depreciates as the US Dollar (USD) holds ground on renewed risk aversion, which could be attributed to the uncertainty over the United States (US)-Iran ceasefire. Traders await the US Consumer Price Inflation (CPI) report due later in the North American session.

Market sentiment remains cautious. Israel continues its strikes on Hezbollah. However, Israeli Prime Minister Benjamin Netanyahu said Israel will begin direct talks with Lebanon soon. Moreover, US President Donald Trump said US forces will remain deployed around Iran until full compliance with the agreement. Read more...

GBP/USD grinds higher but 1.3450 resistance refuses to budge

GBP/USD added 0.31% on Thursday, pushing into the mid-1.3400s as the US-Iran ceasefire continued to weigh on the US Dollar. But the rally is starting to feel laboured. The pair touched 1.3480 earlier in the session before pulling back, and the 1.3400-1.3450 zone is shaping up as a stubborn technical ceiling.

Sterling has been riding the same wave as the rest of the G10: the two-week ceasefire between the US and Iran has crushed the Dollar's safe-haven premium, allowing risk-sensitive currencies to recover from their early-April lows. GBP/USD bounced from around 1.3150 at the start of the month and has now clawed back roughly 300 pips. But Thursday's session showed signs that the easy gains are over. The February Personal Consumption Expenditures (PCE) report, released at 12:30 GMT, showed headline inflation at 2.8% YoY, above the 2.6% consensus. Core PCE ticked to 3.0% YoY, matching forecasts but underlining how far the Federal Reserve (Fed) remains from its 2% target. Monthly readings of 0.4% on both headline and core were firmer than expected. The data did not spark a meaningful Dollar rally, but it planted a seed of doubt about how long the ceasefire-driven selloff in the Greenback can last. Read more...

Author

FXStreet Team

FXStreet

Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

GBP/USD flirts with tops near 1.3470

GBP/USD manages to regain composure and challenge the area of daily highs around 1.3470 on Friday. Cable picks up pace despite marginal gains in the Greenback in a context of swelling geopolitical tensions and rising global oil prices.

EUR/USD trims losses, back above 1.1500

EUR/USD picks up some pace and bouces off earlier lows, reclaiming the 1.1500 threshold and beyond at the end of the week. The pair’s modest pullback follows a persistent risk-averse market mood and renewed buying interest for the US Dollar.

Gold: The $4,000 mark holds the downside for now

Gold faces renewed selling pressure, falling sharply toweard the $4,000 mark per troy ounce as the US Dollar regains momentum. Escalating US-Iran tensions are keeping inflation concerns and expectations of further Fed rate hikes alive, weighing further on the yellow metal.

Bitcoin eyes 50-day EMA breakout, Ethereum consolidates, XRP steadies

Bitcoin, Ethereum, and Ripple trade near key technical levels on Friday as the broader cryptocurrency market pauses following last week's recovery. BTC is approaching the 50-day Exponential Moving Average while ETH continues to consolidate between two major EMAs.

Warsh needs to restore his reputation

We were glad to see our deeply negative reaction to the Warsh press conference was not some personal peculiarity. Just about everybody in the financial press felt the same way. The consensus is building it’s not the Fed in the dog-house but only Warsh. Today the WSJ changed it tune and blasted Warsh—"the honeymoon is already over..”

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.